REPORT FROM THE U.S.—A 4% bump in the number of Americans traveling this Thanksgiving holiday will see a similar rise in average daily rate for hotels in the top 25 U.S. hotel markets.
AAA last week forecast 42.5 million Americans will travel 50 miles or more from home from 23-27 November, an increase over the 40.9 million who made the trip during 2010. This is the first significant increase in any holiday travel this year.
“Driving AAA’s projected increase in the number of Thanksgiving travelers is pent-up demand from Americans who may have foregone holiday travel the last three years,” said Bill Sutherland, VP, AAA Travel Services, in a news release. “As consumers weigh the fear of economic uncertainty and the desire to create lasting family memories this holiday, more Americans are expected to choose family and friends over frugality.”
Those extra travelers are unlikely to fuel a significant bump in hotel occupancy in the country’s top 25 markets, however. Committed occupancy for the five-day holiday weekend is up only 0.3%, according to TravelClick.
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ADR, on the other hand, will see a gain of 4.7%, TravelClick reported.
Markets to report the highest increases in ADR include:
• San Francisco (11.4%);
• Honolulu (11.4%); and
• Seattle (9.4%).
Hotel rates for AAA 3-diamond or mid-range hotels are expected to increase 6% from one year ago with travelers spending an average of US$145 per night compared to US$136. Travelers planning to stay at AAA 2-diamond hotels can expect to pay 7% more at an average cost of US$103 per night.
In terms of occupancy, hotels in Tampa, Florida; Seattle; and Charlotte, North Carolina, reported the largest gains in committed occupancy with increases of 6.6%, 4.7% and 3.7%, respectively.
Minneapolis-St. Paul; Indianapolis; and Toronto, experienced drops in occupancy to the tune of -14.6%, -10% and -7.2%, respectively.